Iowa's Prairie Hills facility pre-sells 100% of capacity as Edible Garden expands

Edible Garden AG Incorporated, the controlled environment agriculture company building a major manufacturing hub in Webster City, Iowa, reported strong second quarter results Thursday, with revenue climbing 12.8% year over year to $3.6 million. The company also announced that 100% of the upcoming Prairie Hills facility's production capacity has already been pre-sold to customers, signaling robust demand for its ready-to-drink nutritional beverages.

The company, which operates greenhouses in Iowa and Michigan, is transitioning from fresh produce into shelf-stable nutritional beverages under its Farm-to-Formula strategy. The Prairie Hills facility, expected to produce its first bottle by the end of 2027, will have capacity for more than 100 million beverage units annually.

What is Edible Garden's Prairie Hills project?

Prairie Hills is a new manufacturing facility in Webster City, Iowa, designed to produce shelf-stable, clean label nutritional beverages using Tetra Pak processing and packaging technology. The facility will support both Edible Garden's own brands, including its Kick sports nutrition line, and private label products for major retailers.

CEO Jim Kras said the company has secured commitments for the entire facility's output, an unusual achievement that reflects pent-up demand in the protein and wellness beverage market.

“We've got presold commitments for 100% of the facility, which is just unheard of,” Kras said during the earnings call.

How is Edible Garden performing financially?

For the quarter ending June 30, 2026, Edible Garden reported:

• Revenue of $3.6 million, up 12.8% from the prior year period
• Total sales growth of 31.2% across condiments, vitamins, and herbs
• Cut herb sales up 42% year over year, with new distribution at Kroger, Target, and Weis Markets
• Condiment sales up 594.7% due to new placements at Safeway, Wakefern, and Woodman's Markets
• SG&A expenses down 21.5% to $3.1 million
• Net loss improved to $3.3 million from $4 million in Q2 2025
• Positive operating cash flow of $900,000 for the first half of 2026

The company's gross profit remained flat at $600,000, with management acknowledging that cost of goods sold remains elevated.

Why is Target expanding its partnership with Edible Garden?

Edible Garden was recently awarded fresh-cut herb distribution through a key Target Midwest distribution center. Kras attributed the win to the company's reliability and the instability of competitors in the controlled environment agriculture sector.

“There's just a lot of consolidation in CEA right now with major competitors basically going out of business,” Kras said. “We're a trusted supplier with best-in-class fill rates and on-time rates.”

The new distribution aligns with Edible Garden's Iowa operations and strengthens its position in the Midwest retail market.

What does the future hold for Edible Garden in Iowa?

The company plans to begin working with a co-manufacturer in the fourth quarter of 2026 to bring products to market before Prairie Hills is completed. Management expects the first production bottle to come off the line in late 2027.

Edible Garden has no plans to build additional greenhouses, focusing instead on maximizing volume through its two existing facilities and driving growth through the Prairie Hills platform.

The company's transition from direct store delivery to retail distribution centers in the Metro New York area is expected to reduce transportation costs and improve operating leverage.

How is Edible Garden funding the Prairie Hills facility?

The company secured $13.5 million in new financing during the quarter for the Iowa facility, bringing total debt to $14.2 million. Cash and restricted cash totaled $10.7 million, with $10 million held in a restricted account for Prairie Hills and $700,000 available for operations.

Total assets increased to $27.7 million from $20.6 million at the end of 2025.

Frequently asked questions

When will the Prairie Hills facility begin production?

Management expects the first production bottle to come off the line in late 2027. The company will use a co-manufacturer starting in Q4 2026 to generate revenue before the facility is completed.

What products will be made at Prairie Hills?

The facility will produce shelf-stable, clean label nutritional beverages, including sports nutrition, protein drinks, functional wellness beverages, and meal replacement products.

Who has committed to buying Prairie Hills capacity?

Management reports that 100% of the facility's capacity is pre-sold to customers, including a mix of Edible Garden's own brands and private label programs with major retailers.

How is Edible Garden performing in its core herb business?

Cut herb sales grew 42% year over year, and the company's products are now available in more than 6,000 retail locations.